Mayor Michael Bloomberg announced the development team composed of Monadnock Development LLC, Actors Fund Housing Development Corp., and nArchitects won a competition to design, construct and operate the building on a city-owned site at 335 East 27th St. in Manhattan. The team will create 55 units, 40% of which will be at rents below market rate.

Eleven of the units will be restricted to households with incomes not exceeding 80% of the area median income, with rents estimated at roughly $940. Another 11 units will have income restrictions, and rents for those apartments will range from $1,700 to $1,800. The remaining apartments will be rented at a market rate, which officials say would be higher than $1,800.

“New York’s ability to pioneer new ideas is what made us the world’s greatest city, and it’s going to be what keeps us strong in the 21st Century,” Bloomberg said at news conference in upper Manhattan announcing the new development team.

While there about 1.8 million one- and two-person households in the city, there are roughly 1 million studio and one-bedroom apartments. “And that imbalance is expected to grow in the years to come,” said the mayor, explaining the need for these micro-units.